Chill Brands Group PLC (LSE: CHLL, OTCQB: CHBRF) has completed an equity fundraising of £2.4 million to bolster the rapid expansion and distribution of its vape products.
This funding round included a £1.2 million private placement facilitated by Allenby Capital and the conversion of £1.2 million in debt financing from an existing shareholder into equity.
A substantial part of the funds raised will be allocated to enhance the sales and distribution of Chill ZERO, the company’s non-nicotine vape product. Chill ZERO is already available in various locations, such as WHSmith travel outlets, Morrisons stores, and key roadside retail locations.
The newly acquired funds will enable Chill Brands to expand its network of independent retailers and maintain its service to current clients. This includes boosting sales through new point-of-sale displays, outdoor advertising, and other marketing initiatives.
Callum Sommerton, the CEO of Chill Brands, expressed satisfaction with the funding, noting its importance for the company’s next growth phase. The funds will be used to fulfil increasing product orders from both new and existing customers and to expand the distribution network to major retailers.
Sommerton highlighted the strong performance of Chill vape products, with reorders from independent retailers indicating positive consumer reception.
The company is now poised to scale operations to meet the rising demand for its products. In the coming months, Chill Brands plans to partner with more leading stores and enhance brand visibility through targeted marketing campaigns as Chill ZERO makes its way into mainstream retail.
The fundraising involved the conditional placement of 28.5 million ordinary shares and a subscription for 3.47 million ordinary shares, priced at 3.75p each.
